DEERFIELD, Ill. and CHICAGO, Ill., July 8, 2020 – In a significant move to enhance patient access to healthcare, especially when considering “Are Doctors Offices Open Today,” Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and VillageMD have announced a groundbreaking expansion of their partnership. Walgreens will become the first national pharmacy chain to integrate full-service doctor offices within its stores on a large scale. This initiative follows a successful trial period and aims to address the growing need for accessible and convenient primary care.
Building on the positive outcomes of initial trials, this expanded collaboration will see the opening of 500 to 700 “Village Medical at Walgreens” primary care clinics over the next five years. These clinics will extend across more than 30 U.S. markets, with plans for further expansion beyond this initial phase. This addresses a critical question for many seeking immediate care: “are doctors offices open today near me?” by placing healthcare services within easily accessible retail locations.
A key feature of these clinics is the integration of pharmacists as vital members of VillageMD’s multidisciplinary healthcare team. This collaborative approach aims to provide patients with comprehensive and coordinated care. Staffed by over 3,600 primary care providers recruited by VillageMD, the clinics are designed to offer a wide spectrum of physician services. For individuals wondering “are doctors offices open today and accepting new patients,” the broad network and expanding locations suggest increased availability.
Accessibility is further enhanced by the acceptance of a wide range of health insurance options. Beyond traditional in-person visits, patients will also benefit from 24/7 care availability through telehealth and at-home visits, ensuring care is accessible regardless of the time of day or location. Notably, over 50 percent of these clinics will be strategically located in Health Professional Shortage Areas and Medically Underserved Areas/Populations, as designated by the U.S. Department of Health and Human Services, directly improving healthcare access in underserved communities and answering the question “are doctors offices open today in my area?” for those in need.
The decision to roll out these clinics nationwide is backed by the encouraging results from a pilot program involving five in-store clinics in Houston, Texas. These initial clinics, launched in November of the previous year, demonstrated strong patient satisfaction, evidenced by Net Promoter Scores exceeding 90. This positive reception underscores the potential of integrated healthcare models to meet patient needs effectively and conveniently.
The integrated model is particularly relevant in today’s healthcare landscape, where six in ten Americans live with at least one chronic condition requiring ongoing medication management. Data from existing Village Medical clinics indicates that integrating pharmacy and primary care leads to improved medication adherence and, consequently, better patient health outcomes. This integrated approach simplifies healthcare management for patients, making it easier to manage their health needs, and implicitly addresses the practical concerns of “are doctors offices open today and can they handle my chronic condition?”.
Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, emphasized the strategic importance of this initiative. “This rollout is a major advancement of one of Walgreens Boots Alliance’s four key strategic priorities, Creating Neighborhood Health Destinations,” he stated. “These clinics at our conveniently located stores are a significant step forward in creating the pharmacy of the future, meeting many essential health needs all under one roof as well as through other channels.” This vision aligns with the growing consumer demand for accessible and comprehensive healthcare solutions, readily available within their communities.
Tim Barry, chairman and CEO of VillageMD, highlighted the broader systemic impact of this partnership. “In the U.S., we spend $4 trillion per year on healthcare, over 85 percent of that is tied to patients with chronic diseases. To improve our healthcare system and reverse the trajectory of health spending, we must meet the needs of all patients. This partnership allows us to unleash the power of primary care doctors and pharmacists, enabling them to work in a coordinated way to enhance the patient experience,” said Barry. “The results of our initial pilot clinics highlight that these outcomes are infinitely achievable.” By integrating services and focusing on preventative and coordinated care, this model aims to contribute to a more efficient and patient-centered healthcare system.
Most of the clinics will occupy approximately 3,330 square feet, with some expanding up to 9,000 square feet. They are designed to optimize existing space within Walgreens stores, ensuring that the retail pharmacy and product offerings remain readily available to customers. This co-location strategy maximizes convenience for patients, allowing them to access both healthcare services and pharmacy needs in a single trip, further enhancing the accessibility factor relevant to “are doctors offices open today and conveniently located?”.
VillageMD and Walgreens have also recently expanded their collaboration to include telehealth services. Village Medical telehealth providers are now available on Walgreens Find Care™, an online platform designed to connect patients with a wide array of health services. This digital integration further broadens access to care, supplementing the physical clinic locations and providing more options for patients seeking timely medical advice and consultations, particularly when physical access might be a concern, like when wondering “are doctors offices open today due to unforeseen circumstances?”.
Financially, Walgreens Boots Alliance is making a substantial investment of $1 billion in equity and convertible debt in VillageMD over the next three years. This includes an immediate $250 million equity investment. Eighty percent of WBA’s investment will be specifically allocated to funding the opening of these new clinics and building the partnership infrastructure, including integration with Walgreens’ digital platforms. Upon full conversion of the debt, WBA is anticipated to hold approximately a 30 percent ownership interest in VillageMD, signaling a deep and long-term commitment to this integrated healthcare model.
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, its convenient retail locations, digital platforms and health and beauty products. The company has more than 100 years of trusted health care heritage and innovation in community pharmacy and pharmaceutical wholesaling.
Including equity method investments, WBA has a presence in more than 25 countries, employs more than 440,000 people and has more than 18,750 stores.
WBA’s purpose is to help people across the world lead healthier and happier lives. The company is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. The company’s businesses have been recognized for their Corporate Social Responsibility. Walgreens was named to FORTUNE* magazine’s 2019 Companies that Change the World list and Boots UK was recognized as Responsible Business of the Year 2019-2020 by Business in the Community.
WBA is included in FORTUNE’s 2020 list of the World’s Most Admired Companies. This is the 27th consecutive year that WBA or its predecessor company, Walgreen Co., has been named to the list.
More company information is available at www.walgreensbootsalliance.com.
*© 2019, Fortune Media IP Limited. Used under license.
About VillageMD
VillageMD, through its subsidiary Village Medical, is a leading, national provider of value-based primary care services. We partner with physicians to provide the tools, technology, operations, staffing support and industry relationships to deliver high-quality clinical care and better patient outcomes, while reducing the total cost of care. The Village Medical brand provides primary care for patients at traditional free-standing clinics, Village Medical at Walgreens clinics, at home and via virtual visits. VillageMD and Village Medical have grown to include more than 2,800 physicians across nine markets, are responsible for approximately 600,000 lives and manage $4 billion in total medical spend in value-based contracts. To learn more, please visit www.villageMD.com.
Cautionary Note Regarding Forward-Looking Statements. All statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, those related to the timing and effectiveness of collaboration plans and implementation, the ability to realize the anticipated benefits of the strategic partnership, competitive actions in the marketplace, and the ability to achieve anticipated financial and operating results in the amounts and at the times anticipated, as well as those described in Item 1A (Risk Factors) of Walgreens Boots Alliance, Inc.’s Form 10-K for its fiscal year ending August 31, 2019 and Form 10-Q for its fiscal quarter ending February 29, 2020, and in other documents that Walgreens Boots Alliance, Inc. files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially. These forward-looking statements speak only as of the date they are made. Each of Walgreens Boots Alliance, Inc., Walgreens and VillageMD do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
